701B.155 Application for reservation;
cancellation and resubmission of application; duties of utility and applicant;
limits on reservation of capacity; submission and contents of claim; effect of
failure to install system.

701B.245 Method of accounting for costs and
revenues of utility; filing, calculation and adjustment of Solar Thermal
Program rate; recovery of Program costs.

701B.250 Alternative method of accounting for
costs and revenues of utility.

701B.255 Allocation of number of solar
thermal systems to be installed; rebate payment levels.

701B.260 Incentives for private residential
property and small business property: Eligibility for rebate; application for
reservation; cancellation and resubmission of application; duties of utility
and applicant; claim for rebate.

701B.265 Incentives for school property and
public and other property: Eligibility for rebate; application for reservation;
duties of utility and applicant; cancellation of application; claim for rebate.

701B.270 Eligibility of applicant who
withdraws from Program or does not complete installation of solar thermal
system.

701B.275 Notification of customer of record
regarding correspondence between utility and applicant.

1. The Commission or the presiding officer
may allow deviation from the provisions of this chapter if:

(a) Good cause for the deviation appears;

(b) The person requesting the deviation provides a
specific reference to each provision of this chapter from which deviation is
requested; and

(c) The Commission finds that the deviation is in
the public interest and is not contrary to statute.

2. As used in this section, “presiding
officer” has the meaning ascribed to it in NAC
703.090.

(Added to NAC by Pub. Utilities Comm’n by R175-07, eff.
4-17-2008)

NAC 701B.020Adoption by reference of part of Uniform System of Accounts of
Federal Energy Regulatory Commission. (NRS 703.025)The
Public Utilities Commission of Nevada hereby adopts by reference from the
Uniform System of Accounts of the Federal Energy Regulatory Commission the
account identified as Other Regulatory Assets, FERC Account No. 182.3. This
account is contained in 18 C.F.R. Parts 101 and 201, and the volume of the Code
of Federal Regulations containing these parts may be purchased by mail from the
Superintendent of Documents, United States Government Printing Office, P.O. Box
979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866)
512-1800 or on the Internet at http://bookstore.gpo.gov, for the price
of $68. The volume may be accessed free of charge on the Internet at http://www.gpoaccess.gov/cfr/index.html.

NAC 701B.067“Corporation for public benefit” defined. (NRS 701B.005, 701B.200, 703.025)“Corporation
for public benefit” means a corporation that is organized for a public or
charitable purpose and which upon dissolution must distribute its assets to the
United States, a state, or a person which is recognized as exempt pursuant to
26 U.S.C. § 501(c)(3).

(Added to NAC by Pub. Utilities Comm’n by R122-13, eff.
2-26-2014)

NAC 701B.070“Host customer” defined. (NRS 701B.200, 703.025)“Host
customer” means either the utility customer of record at the location where a
solar energy system will be located or a person who has been designated by the
utility customer of record in a letter to the utility explaining the
relationship between that person and the utility customer of record.

4. A person whose income does not exceed 80
percent of the median family income for the county in which the person resides,
subject to an adjustment for any area with unusually high or low median incomes
or housing costs; or

NAC 701B.115“System owner” defined. (NRS 701B.200, 703.025)“System
owner” means the owner of the generating equipment at the time an incentive is
paid. If a solar energy system is owned by a third party, the third party is
the system owner.

1. Pursuant to NRS 701B.230, a utility shall
file with the Commission on or before February 1 of each year an annual plan
which must include the following:

(a) A schedule describing major program milestones;

(b) A budget with the following categories:

(1) Contractor costs;

(2) Marketing costs;

(3) Training costs; and

(4) Utility administrative costs;

(c) A report on the activity of the Solar Program
during the immediately preceding calendar year and the current calendar year
which includes, without limitation, the most up-to-date versions of the
following information for each calendar year:

(1) The number of applications filed in each
Solar Program category;

(2) The number of participants enrolled in the
Solar Program and the number who have dropped out of the Solar Program;

(3) The annual budget and expenditures;

(4) Any remaining financial obligations at the
end of a calendar year;

(5) A list of completed installations;

(6) A summary of marketing efforts; and

(7) A description of training and educational
activities;

(d) A description of the application process,
including, without limitation:

(1) The procedures to be followed by the
utility and the applicant, including, without limitation, the procedure by
which a participant may claim an incentive upon the completion of a project;

(2) The criteria for the selection of
applicants for the Solar Program; and

(3) Copies of proposed applications and forms,
including, without limitation, a copy of the form by which a participant may
claim an incentive upon the completion of a project;

(e) The average installed cost in Nevada of a solar
energy system during the immediately preceding calendar year;

(f) The total of all incentives paid for the
immediately preceding calendar year;

(g) The total of all incentives projected to be
paid for the current calendar year, with subtotals for incentives paid for
installed capacity, incentives projected to be paid for active reservations and
incentives forecasted to be paid;

(h) A graph and table showing the cumulative
committed capacity and incurred incentive liability, separated into installed
capacity and active reservations, at the end of each year since the inception
of the Solar Program;

(i) A detailed advertising plan;

(j) An education and training plan;

(k) An inspection and verification plan for solar
energy systems which verifies all applicable requirements for applicants or
participants, including, without limitation, any applicable requirements
described in NAC 701B.180; and

(l) A table demonstrating the effects of the Solar
Program on the rates paid by customers.

2. The annual plan filed by the utility on
or before February 1, 2014, must contain, in addition to items listed in
subsection 1, the utility’s plan for implementing the Lower Income Solar Energy
Pilot Program established pursuant to NRS
704.786. In each subsequent annual plan filed pursuant to this section, the
utility shall report on the activities undertaken by the utility and the
achievements of the Lower Income Solar Energy Pilot Program during the
immediately preceding calendar year, and shall additionally provide the
information listed in subsection 1 that is relevant to the Lower Income Solar
Energy Pilot Program.

NAC 701B.130Annual plan of utility: Approval by Commission. (NRS 701B.005, 701B.200, 703.025)Not
later than 150 days after the annual plan is filed pursuant to NAC 701B.125, the Commission will issue an order
approving the annual plan with such modifications and upon such terms and
conditions as the Commission finds necessary or appropriate to facilitate the
Solar Program.

(Added to NAC by Pub. Utilities Comm’n by R175-07, eff.
4-17-2008; A by R122-13, 2-26-2014)

1. All reasonable and prudent costs
associated with carrying out and administering the Solar Program must be
accounted for in the books and records of a utility separately from amounts
attributable to any other activity. The utility must account for the costs and
revenues in the following manner:

(a) Calculate, on a monthly basis, the costs
incurred and revenues received in the Solar Program since the end of the test
period in its last proceeding to change the Solar Program rate;

(b) Record the cost of the Solar Program in a
separate subaccount of FERC Account No. 182.3 and record an offset in the
appropriate subaccount of other FERC accounts;

1. A utility shall include with its annual
deferred energy accounting adjustment application filed pursuant to subsection
11 of NRS 704.110 a revised
Solar Program rate. The rate must be calculated by adding the following two
components:

(a) A prospective rate determined by dividing not
more than the total costs in the Solar Program annual plan by the projected
kilowatt-hours for the calendar year; and

(b) A clearing rate determined by dividing the
cumulative balance in the Solar Program subaccount of FERC Account No. 182.3 at
the end of the deferred energy test period as defined in NAC 704.063 by the test period
kilowatt-hour sales.

2. The Commission will allow recovery of all
prudent Solar Program costs included in the subaccount of FERC Account No.
182.3 at the end of the test period as defined in NAC 704.063 and adjust the Solar Program
rate accordingly.

1. The utility shall meet with industry
stakeholders, including the Regulatory Operations Staff of the Commission,
twice a year to evaluate the effectiveness of the Solar Program and its
progress toward meeting its goals.

2. Within 30 days after each such meeting,
the utility shall file an informational filing with the Commission, including,
without limitation:

(a) A status update regarding the Solar Program,
including the current number of applicants, completed installations and
progress toward meeting the current incentive step level goal; and

(b) A summary of the discussion from the meeting,
including concerns and recommendations of the stakeholders.

1. The utility shall offer to a host
customer an incentive pursuant to subsections 3 and 4. Any customer of a
utility that receives retail electric service from the utility may apply for an
incentive. A host customer or, pursuant to subsection 1 of NAC 701B.175, a system owner may apply for the
incentive. The project site must be located in the service territory of the
utility.

2. A host customer must, based upon the
nature of the host customer, be designated as one of the following categories:

(a) Public entity;

(b) Low-income and nonprofit;

(c) Residential and small commercial; or

(d) Large commercial and industrial.

Ę A host
customer designated as low-income and nonprofit is not eligible to participate
in the Lower Income Solar Energy Pilot Program established pursuant to NRS 704.786 with the same solar
energy system that is the subject of a reservation of capacity issued pursuant
to NAC 701B.155.

3. A host customer that applies for a
reservation of capacity for a solar energy system with a capacity of not more
than 25 kilowatts whose application is approved is eligible to receive a
one-time incentive payment. The amount of the incentive paid to a host customer
for each category pursuant to this subsection must be determined during the
proceeding to review the annual plan of the utility filed pursuant to NAC 701B.125.

4. A host customer that applies for a
reservation of capacity for a solar energy system with a capacity of more than
25 kilowatts but less than 500 kilowatts whose application is approved may
enter into a contract with the utility to receive an incentive paid over a
period of 5 years. The amount of the incentive must be based upon the metered
production of the solar energy system. The incentive rate paid to a host
customer must be determined during the proceeding to review the annual plan of
the utility filed pursuant to NAC 701B.125.

5. A contract to receive an incentive paid
over a period of 5 years executed pursuant to subsection 4 must not be executed
on or after January 1, 2021. The contract must not provide for the payment of
the incentive, or any portion thereof, after December 31, 2025. The incentive
must be paid on a quarterly basis and must be paid directly to the host
customer or third-party assignee of the host customer. The utility shall
include in its first annual plan filed after February 26, 2014, a detailed
procedure and schedule for the payment of incentives.

6. The utility shall not issue a reservation
notice to a host customer if the incentive that would be paid under the notice
would cause the incentive expenditure cap established pursuant to paragraph (a)
of subsection 2 of NRS 701B.005
to be exceeded.

7. A solar energy system with a capacity of
more than 500 kilowatts is not eligible to receive an incentive.

8. A utility shall, in the annual plan of
the utility filed pursuant to NAC 701B.125,
propose incentive levels for each category. The Commission may approve the
proposed incentive levels, in whole or in part, or prescribe incentive levels
other than those proposed by the utility. In approving an incentive level, the
Commission will ensure that the incentive level is consistent with NRS 701B.190, subsection 1 of NRS 701B.200 and NRS 701B.220.

9. In determining eligibility to participate
in the Solar Program, each solar energy system located on the premises must be treated
as a single solar energy system.

10. Portfolio energy credits generated by a
host customer participating in the Solar Program must be assigned to the
utility pursuant to NRS 701B.290
and 704.775.

NAC 701B.152Utility to publish quarterly report of average installed cost for
certain systems; report to serve as basis for calculating cap on individual
incentive amounts. (NRS 701B.005, 701B.200, 701B.210, 701B.220, 703.025)A
utility shall publish on a quarterly basis and make available to prospective
applicants a report of the average installed cost of a solar energy system
installed in each quarter of the immediately preceding 12-month period. The
utility shall provide such costs for systems with a capacity of not more than
25 kilowatts and for systems with a capacity of more than 25 kilowatts but less
than 500 kilowatts. The average cost during each quarter will serve as the
basis for calculating the cap on the individual incentive amounts issued during
the next subsequent quarter pursuant to subsections 3 and 4 of NAC 701B.150.

(Added to NAC by Pub. Utilities Comm’n by R122-13, eff.
2-26-2014)

NAC 701B.154Provision to Commission of applications. (NRS 701B.005, 701B.200, 701B.210, 703.025)A
utility shall provide to the Commission each application, including related
materials, submitted by a host customer designated pursuant to NAC 701B.150 as a public entity, other than a
corporation for public benefit or an Indian tribe or tribal organization. The
application must be submitted to the Commission not later than 30 days after
the application is approved and the issuance of a reservation notice.
Confidential information, including, without limitation, personal identifying
information, must be provided to the Commission pursuant to NAC 703.527 to 703.5282, inclusive.

1. A host customer may submit an application
for the reservation of an incentive to the utility using forms approved by the
Commission once the host customer has executed a contract with a third party
for, or has received a purchase order demonstrating proof of purchase of, solar
generating equipment. The application for the reservation of an incentive must
include, without limitation:

(a) Signatures of the applicant, the host customer
and the system owner, if different from the host customer;

(b) A copy of the executed agreement to purchase
and install the solar energy system;

(c) If the system owner is not the host customer, a
copy of the executed agreement between the host customer and the system owner;

(d) Any documentation required by the utility which
substantiates ownership of the equipment;

(e) If the host customer is designated pursuant to NAC 701B.150 as a public entity, other than a
corporation for public benefit or an Indian tribe or tribal organization, an
attestation that the host customer has complied with all applicable provisions
of chapters 338 and 701B of NRS;

(f) An attestation executed by the contractor
involved in the installation of the solar energy system stating that the
installation will meet siting requirements as determined by the utility; and

(g) A refundable application fee, payable to the
utility, of:

(1) For a solar energy system with a capacity
of not more than 25 kilowatts, $50.

(2) For a solar energy system with a capacity
of more than 25 kilowatts but less than 500 kilowatts, $100.

Ę The fee must
be refunded without interest upon the installation of the solar energy system.
The fee is forfeited if the solar energy system is not installed by the
expiration date contained in the reservation notice. Each fee that is not
refunded must be used by the utility to fund the costs of the Lower Income Solar
Energy Pilot Program established pursuant to NRS 704.786.

2. The utility shall provide on its Internet
website, adjacent to the application forms, a best practices guide to selecting
a contractor and other consumer resources, including, but not limited to, the
current contact information for the State Contractors’ Board.

3. If an application is found to be
incomplete or requires clarification, the utility shall request additional
information. If the applicant has not submitted the requested information
within 20 calendar days after receipt of the request, the application will be
cancelled and the applicant may resubmit the application to the utility. The
utility shall treat all resubmitted applications as new applications and
process them in sequence with other new applications. Money for an incentive is
not reserved until the utility receives all information and documentation
required for the application and the project is approved.

4. The utility shall review and approve
applications in the order in which the applications are received, subject to
the utility’s process for review and approval of applications.The utility shall, within
30 days after receipt of an application, review the application for
completeness and determine eligibility. Once the utility approves the
application, the utility shall issue a notice confirming that a specific
incentive amount is reserved for the project. The solar energy system must be
installed and capable of producing electricity on or before the expiration date
listed on the notice. The notice must list:

(a) The incentive type and the amount that has been
reserved for the project;

(b) The approved kilowatt capacity of the project;
and

(c) An expiration date for the reservation, which
must be 12 months after the date of the issuance of the notice.

5. If a host customer:

(a) Has consumed energy delivered by the utility
during each of the 12 months immediately preceding the filing date of the
application, the reservation of capacity for an applicant must not exceed an
amount of capacity that would produce an amount of energy greater than 100
percent of the annual requirements for electricity of the customer-generator,
as determined by the consecutive 12-month period with the highest energy usage
during the 2-year period immediately preceding the filing date of the
application.

(b) Has not consumed energy delivered by the
utility during each of the 12 months immediately preceding the filing date of
the application, or if the host customer is installing the solar energy system
on a new building, the reservation of capacity for an applicant must not
exceed:

(1) For a residential host customer, 2 watts
per square foot of the building; or

(2) For a nonresidential host customer, the
maximum amount of capacity allowable for the building as determined by a
procedure that the utility includes in its annual plan filed pursuant to NAC 701B.125 and that is approved by the Commission.

6. To receive the full incentive for the
reservation, the applicant must complete the installation of a solar energy
system not later than the expiration date listed on the notice issued pursuant
to subsection 4. If the applicant fails to complete installation of the
participating solar energy system on or before the expiration date listed on
the notice, the reservation is forfeited and the utility must make the capacity
for that reservation available to other applicants.

7. To claim the incentive, the applicant
must submit a form approved by the Commission to the utility after the solar
energy system is installed and capable of producing electricity. The form must
include, without limitation:

(a) Signatures of the applicant, the host customer
and the system owner, if different from the host customer;

(b) Any supporting documentation deemed necessary
by the Commission; and

(c) Any documentation required by the utility which
substantiates ownership of the equipment.

8. If a host customer has received a
reservation for an incentive but failed to install a solar energy system within
the time prescribed by this section on three or more occasions, the host
customer may not file any additional applications.

NAC 701B.157Commission docket to include applications as public records. (NRS 701B.005, 701B.200, 701B.210, 703.025)The
Commission will, for each calendar year, open a docket in which to file
applications received by a utility under the Solar Program for the purpose of
including such applications in the public records of the Commission.

1. Once a project to install a solar energy
system with a capacity of not more than 25 kilowatts is completed, the
applicant may request payment of the one-time incentive amount, which must be
based on the nameplate capacity of the installed solar energy system and which
must not exceed the incentive listed on the confirmed reservation.

2. After the completion of a project to
install a solar energy system with a capacity of more than 25 kilowatts but
less than 500 kilowatts, the applicant may request the commencement of the
payment of the performance-based incentive described by the confirmed
reservation and in the contract with the utility.

3. A project is considered completed when it
is completely installed, interconnected, permitted and capable of producing
electricity in the manner and in the amounts for which it was designed.

4. To receive the one-time incentive payment
or to initiate the payment of the performance-based incentive:

(a) All requirements of the Solar Program must be
met;

(b) A complete claim form must be submitted by the
expiration date listed for the project on its confirmed reservation, including,
without limitation, final itemized invoices of the cost of tangible materials
and labor, and any documentation verifying the installed cost of the project
pursuant to subsection 4 of NRS
701B.255; and

(c) The host customer must enter into a net
metering agreement with the utility.

5. If a claim form is incomplete or is found
to require clarification, the utility shall request the information necessary
to process that application further. If the applicant has not submitted the
requested information within 20 calendar days after receipt of the request, the
request for payment may be denied. If a claim form is not received by the
expiration date for the project, or if the project is otherwise ineligible, the
utility shall send a written notice to the applicant stating the reasons why
the project is ineligible and the project is rejected. If a project is
rejected, the applicant or host customer may reapply for the reservation of an
incentive but will be subject to the eligibility requirements, incentive levels
and funding available at the time of reapplication.

6. As used in this section, “cost of
tangible materials and labor” means the reasonable cost of materials and labor
for permitting, panels, inverters, the balance of system components and any
other costs that are directly related to and required for the operation of a
solar energy system. The term does not include such costs for improvements to a
building or site which are necessary to accommodate a solar energy system, as
determined during a proceeding to review the annual plan of a utility filed
pursuant to NAC 701B.125.

(Added to NAC by Pub. Utilities Comm’n by R184-09, eff.
4-20-2010; A by R122-13, 2-26-2014)

1. The host customer may act as the
applicant or system owner, may designate the applicant or system owner to act
on his or her behalf and may change or cancel these designations at any time
with prior written notice to the utility and, if applicable, to the system
owner.

2. The host customer is the holder of the
reservation of an incentive, must be a party to any agreement or contract with
the utility and retains sole rights to the reservation.

3. If the host customer is not the system
owner, the system owner must be a party to any agreement or contract with the
utility.

(Added to NAC by Pub. Utilities Comm’n by R184-09, eff.
4-20-2010; A by R122-13, 2-26-2014)

NAC 701B.185Verification of licensing of contractors involved in installation
of solar energy system; suspension of contractor’s license during application
process. (NRS
701B.005, 701B.200, 701B.210, 701B.220, 701B.240, 703.025)In
reviewing an application, a utility shall verify that any contractor involved
in the installation of a solar energy system has an active license with the
State Contractors’ Board. If the utility determines that a contractor’s license
was suspended during the application process:

1. Reservations associated with the
contractor will not be confirmed;

2. Applications associated with the
contractor will be suspended;

3. No incentive payments will be made for
solar energy systems associated with the contractor, except for solar energy
systems which were interconnected before the suspension of the contractor’s
license or unless the suspension is lifted not later than 30 days after the
suspension;

4. The utility shall notify each party
identified on the application of the suspension; and

5. If the solar energy system has not been
installed, the host customer may hire a new contractor without losing the
current reservation of an incentive.

(Added to NAC by Pub. Utilities Comm’n by R184-09, eff.
4-20-2010; A by R122-13, 2-26-2014)

1. A customer who applies to participate in
the Solar Thermal Program;

2. An eligible contractor who applies on
behalf of a customer to participate in the Solar Thermal Program; or

3. Any other person who applies on behalf of
a customer to participate in the Solar Thermal Program if:

(a) The person is designated and authorized by the
customer to apply on behalf of the customer to participate in the Solar Thermal
Program; and

(b) The designation and authorization are set forth
in a letter from the customer to the utility which sets forth the relationship
between the customer and the person.

(Added to NAC by Pub. Utilities Comm’n by R210-09, eff.
4-20-2010)

NAC 701B.210“Customer” defined. (NRS 701B.336, 701B.342, 703.025)“Customer”
means a customer of a utility that supplies natural gas in this State.

(Added to NAC by Pub. Utilities Comm’n by R210-09, eff.
4-20-2010)

NAC 701B.215“Eligible contractor” defined. (NRS 701B.336, 701B.342, 703.025)“Eligible
contractor” means a person who has satisfied the requirements set forth in NAC 701B.285 and any additional requirements to
install solar thermal systems for the customers of a utility set forth in the
annual plan of the utility filed pursuant to NAC
701B.235.

1. In accordance with the requirements of NRS 701B.336, the Commission
hereby establishes the Solar Thermal Systems Demonstration Program for use by
public utilities that supply natural gas in this State.

2. The Solar Thermal Program consists of the
following categories of participants:

1. Not later than July 19, 2010, and
annually thereafter, each utility that supplies natural gas in this State shall
file with the Commission a plan which must include:

(a) A schedule describing major program milestones
of the Solar Thermal Program.

(b) A budget which includes information relating
to:

(1) Rebates;

(2) Contractor costs;

(3) Marketing costs;

(4) Training costs; and

(5) Utility administrative costs.

(c) Following the first plan year, a report on the
productivity of the Solar Thermal Program for the previous year and a status
report on the current year, including, without limitation:

(1) The number of applications received by the
utility in each category of the Solar Thermal Program;

(2) The number of participants in the Solar Thermal
Program and the number of participants who have withdrawn from the Solar
Thermal Program;

(3) The annual budget and expenditures of the
Solar Thermal Program;

(4) A list of completed installations;

(5) A summary of marketing efforts; and

(6) A description of training for inspectors,
certifiers and eligible contractors and educational activities.

(d) A description of the application process,
including, without limitation:

(1) The procedures to be followed by the
applicant and the utility; and

(2) Copies of current or proposed applications
and forms.

(e) A detailed advertising plan.

(f) An education and training plan, including,
without limitation, a tentative schedule of training to be offered by the
utility.

(g) An inspection and verification plan.

(h) Any recommendations on modifications to the
existing schedule of rebates.

2. Within 150 days after a utility has filed
an annual plan, the Commission will issue an order approving the annual plan
with such modifications and upon such terms and conditions as the Commission
finds necessary or appropriate to facilitate the Program.

(Added to NAC by Pub. Utilities Comm’n by R210-09, eff.
4-20-2010; A by R083-11, 5-30-2012)

1. All reasonable and prudent costs
associated with carrying out and administering the Solar Thermal Program must
be accounted for in the books and records of a utility separately from amounts
attributable to any other activity. The utility must select a method pursuant
to NAC 701B.245 or 701B.250
to account for such costs and revenues.

NAC 701B.245Method of accounting for costs and revenues of utility; filing,
calculation and adjustment of Solar Thermal Program rate; recovery of Program
costs. (NRS
701B.336, 701B.342, 703.025)

1. Except as otherwise provided in NAC 701B.250, a utility shall account for costs and
revenues in the following manner:

(a) Calculate, on a monthly basis, the costs
incurred and revenues received in the Solar Thermal Program since the end of
the test period in its last proceeding to change the Solar Thermal Program
rate;

(b) Record the cost of the Solar Thermal Program in
a separate subaccount of FERC Account No. 182.3 and make an appropriate offset
to other subaccounts;

(d) Record in the subaccount of FERC Account No.
182.3 the revenues attributable to the Solar Thermal Program rate to recover
the costs of the Solar Thermal Program; and

(e) Apply a carrying charge at the rate of
one-twelfth of the authorized rate of return to the monthly ending balance in
the subaccount of FERC Account No. 182.3.

2. A utility shall include with its annual
rate adjustment application filed pursuant to subsection 9 of NRS 704.110 a revised Solar Thermal
Program rate. The revised Solar Thermal Program rate must be calculated by
adding the following two components:

(a) A prospective rate determined by dividing the
total costs in the Solar Thermal Program annual plan by the projected therms
for the program year; and

(b) A clearing rate determined by dividing the
cumulative balance in the Solar Thermal Program subaccount of FERC Account No.
182.3 at the end of the test period identified by the utility, consisting of
the 12 calendar months ending on the adjustment date, consistent with NAC 704.063, by the therm sales for that
test period.

3. The Commission will allow recovery of all
prudent Solar Thermal Program costs included in the subaccount of FERC Account
No. 182.3 at the end of the identified test period, as defined in NAC 704.063, and adjust the Solar Thermal
Program rate accordingly.

(Added to NAC by Pub. Utilities Comm’n by R210-09, eff.
4-20-2010; A by R076-11, 5-30-2012)

NAC 701B.250Alternative method of accounting for costs and revenues of
utility. (NRS
701B.336, 701B.342, 703.025)In lieu
of accounting for costs and revenues in the manner set forth in NAC 701B.245, a utility may account for costs and
revenues in the following manner:

1. The utility may recover approved costs
through a per-therm surcharge after application and Commission approval.

2. The utility shall account for costs and
revenues on a monthly basis in the following manner:

(a) Debit the account for costs for implementing
and administering the Solar Thermal Program and record monthly;

(b) Credit the account for the revenues
attributable to the Solar Thermal Program rate; and

(c) Apply a carrying charge equal to one-twelfth of
the authorized overall rate of return to the monthly balance.

3. The accumulated amount in the program
account balance must be cleared by establishing a surcharge or credit to
amortize the account balance over a 1-year period, unless otherwise specified
by the Commission.

1. To reach the goal of at least 3,000 solar
thermal installations by 2019, the allocation of the number of solar thermal
systems to be installed for each utility must be based on the approximate
number of customers of the utility on September 30, 2009.

2. Except as otherwise provided in
subsection 3:

(a) For a utility that has more than 600,000
customers:

(1) The total number of solar thermal systems
to be installed is 2,430.

(2) The number of solar thermal systems to be
installed in each of the first and second rebate steps is 486.

(3) The number of solar thermal systems to be
installed in the third rebate step is 1,458.

(b) For any other utility:

(1) The total number of solar thermal systems
to be installed is 570.

(2) The number of solar thermal systems to be
installed in each of the first and second rebate steps is 114.

(3) The number of solar thermal systems to be
installed in the third rebate step is 342.

3. The utility may file with the Commission
a request to adjust the number of solar thermal systems required to be
installed pursuant to subsection 2 to maximize participation in the Program.

4. The utility shall calculate its progress
in meeting the number of solar thermal systems to be installed that are
required pursuant to this section for each rebate step by using the number of
projects that have been determined eligible and have been issued notices that
incentive reservations have been confirmed for those projects. An unused
reservation from a previous rebate step or current rebate step that becomes
available as the result of applicants withdrawing or being withdrawn from the
Program must be added to the number of solar thermal systems in the current
step. When the total number of solar thermal systems in any rebate step has
been issued, any subsequent reservations must be issued at the next rebate
step.

5. The rebate payment levels must
automatically be reduced over the duration of the Solar Thermal Program in
three steps, based on the volume of confirmed reservations. The duration of
each step must be dependent on when the utility reaches its goal. The amount of
the rebate for each step of the Solar Thermal Program is as follows:

(a) For the first rebate step:

Category

Category Incentives

Rebate Level

Maximum Rebates

School Property

27

$19.00 times therms per year
rating of the system

The lesser of 50 percent of
system cost or $30,000

Public and Other

Property

27

$19.00 times therms per year
rating of the system

The lesser of 50 percent of
system cost or $30,000

Private Residential

Property

420

$14.50 times therms per year
rating of the system

The lesser of 30 percent of
system cost or $3,000

Small Business

Property

126

$14.50 times therms per year rating
of the system

The lesser of 30 percent of
system cost or $7,500

(b) For the second
rebate step:

Category

Category
Incentives

Rebate
Level

Maximum
Rebates

School Property

27

$17.00 times therms per year
rating of the system

The lesser of 50 percent of
system cost or $30,000

Public and Other

Property

27

$17.00 times therms per year
rating of the system

The lesser of 50 percent of
system cost or $30,000

Private Residential

Property

420

$13.00 times therms per year
rating of the system

The lesser of 30 percent of
system cost or $3,000

Small Business

Property

126

$13.00 times therms per year
rating of the system

The lesser of 30 percent of
system cost or $7,500

(c) For the third rebate step:

Category

Category Incentives

Rebate Level

Maximum Rebates

School Property

81

$14.00 times therms per year
rating of the system

The lesser of 50 percent of
system cost or $30,000

Public and Other

Property

81

$14.00 times therms per year
rating of the system

The lesser of 50 percent of
system cost or $30,000

Private Residential

Property

1,260

$11.00 times therms per year
rating of the system

The lesser of 30 percent of
system cost or $3,000

Small Business

Property

378

$11.00 times therms per year
rating of the system

The lesser of 30 percent of
system cost or $7,500

6. For the first 120 days after a rebate
step is opened to applications, a utility shall not approve an applicant for
more than 25 percent of the projects available in each category within the
service territory of the utility. After the expiration of the 120-day period,
an applicant may receive approval for any amount of the remaining capacity,
regardless of the total number of approved applications held by the applicant.

7. If the rebates specified in this section
change between the time an application for reservation of an incentive is
approved and the time the solar thermal system is complete, the applicant must
receive the rebate which was in effect at the time that the application was
approved.

(Added to NAC by Pub. Utilities Comm’n by R210-09, eff.
4-20-2010)

NAC 701B.260Incentives for private residential property and small business
property: Eligibility for rebate; application for reservation; cancellation and
resubmission of application; duties of utility and applicant; claim for rebate. (NRS 701B.336, 701B.342, 703.025)

1. To be eligible for a rebate pursuant to
the Solar Thermal Program, a solar thermal system which is installed on
property that is included within the category of private residential property
or small business property is subject to the provisions of this section.

2. An applicant must submit an application
for reservation of an incentive to the utility using forms provided by the
utility and approved by the Commission. The application must be accompanied by
a copy of:

(a) A contract signed by a customer of the utility;

(b) All warranties applicable to the solar thermal
system and the installation of the solar thermal system;

(c) Authorization to act on behalf of the customer,
if applicable; and

(d) An attestation executed by the contractor
stating that the project will satisfy siting requirements as determined by the
utility.

3. The application must require the
applicant to estimate the annual savings of therms per year and the amount of
any rebate for which the solar thermal system is eligible based on all
information available at the time the application is submitted to the utility.

4. If the application is determined by the
utility to be incomplete or to require clarification, the utility shall request
additional information from the applicant. If the applicant fails to submit the
requested information within 20 calendar days after receipt of the request, the
utility shall cancel the application. If an application is cancelled by the
utility, the applicant may resubmit an application for the project to the
utility. All resubmitted applications must be treated as new applications and
be processed in sequence with other new applications. Rebate money must not be
reserved until the utility receives all required information and documentation
and approves the project.

5. The utility shall, within 30 days after
receipt of a complete application, review the application and determine
eligibility for a rebate. If the utility approves the project, the utility
shall issue a confirmed reservation notice for the project. The confirmed
reservation notice must specify:

(a) The dollar amount of the rebate reserved for
the project;

(b) An expiration date for the reservation of the
rebate, which must be 12 months after the date of issuance of the notice; and

(c) That the solar thermal system must be
purchased, installed and put into operation not later than the expiration date
specified in the confirmed reservation notice.

6. After the solar thermal system has been
purchased, installed and put into operation, the applicant must submit to the
utility a rebate claim package which includes a rebate claim form and all
supporting documentation required by the utility. The rebate claim form must be
signed by both the eligible contractor and the customer.

7. To receive the rebate, all requirements
of the Solar Thermal Program must be met and a complete rebate claim package
must be submitted to the utility before the expiration date specified in the
confirmed reservation notice.

8. If a rebate claim package is incomplete
or requires clarification, the utility shall request the required information
from the applicant. If the applicant fails to provide the required information
within 20 calendar days after receiving the request for information, the
utility may reject the rebate claim form. If a rebate claim package is not
received on or before the expiration date specified in the confirmed
reservation notice, or the information in the rebate claim package indicates
that the project is otherwise ineligible, the utility shall send a written notice
to the applicant stating the reasons why the project is rejected and not
eligible for a rebate. The applicant may resubmit a rebate claim package but
will be subject to the eligibility requirements, rebate levels and funding
available at the time of the resubmission.

(Added to NAC by Pub. Utilities Comm’n by R210-09, eff.
4-20-2010)

NAC 701B.265Incentives for school property and public and other property:
Eligibility for rebate; application for reservation; duties of utility and
applicant; cancellation of application; claim for rebate. (NRS 701B.336, 701B.342, 703.025)

1. To be eligible for a rebate pursuant to
the Solar Thermal Program, a solar thermal system which is installed on
property that is included within the category of school property or public and
other property is subject to the provisions of this section.

2. An applicant, after issuing a request for
proposals or making any other solicitation for the installation of the solar
thermal system, must submit an application for reservation of an incentive to
the utility using forms provided by the utility and approved by the Commission.
The application must be accompanied by a copy of:

(a) The request for proposals or other solicitation
for the installation of the solar thermal system or a copy of an executed
agreement for the purchase and installation of the solar thermal system;

(b) The signature of the applicant; and

(c) Authorization to act on behalf of the customer,
if applicable.

3. The application must require the
applicant to estimate the annual savings of therms per year and the amount of
any rebate for which the solar thermal system is eligible based on all
information available at the time the application is submitted to the utility.

4. The utility shall, within 30 days after
receipt of the application, review the application and determine whether it is
complete. Once the utility determines that the application is complete, the
utility shall reserve money allocated for the specified size of the solar
thermal system and send a notice to the applicant. The notice must specify:

(a) The incentive amount that has been reserved for
the project;

(b) The expiration date of the notice, which must
be 30 months after the date of the notice;

(c) That the solar thermal system must be
purchased, installed and put into operation not later than the expiration date
specified in the confirmed reservation notice;

(d) The date 90 days after the issuance of the
notice by which the applicant must submit a checklist approved by the
Commission documenting the progress of the project and demonstrating that the
project is progressing and there is a sustained commitment to complete the
project within 30 months after the date of the notice; and

(e) The date 270 days after the issuance of the
notice by which the applicant must submit all documentation required to confirm
the reservation in the initial notice, including, without limitation:

(1) A copy of the executed agreement for the
purchase and installation of the solar thermal system; and

(2) Any documentation required by the utility
which substantiates ownership of the equipment.

5. The reservation of money pursuant to
subsection 4 expires upon the failure of the applicant to satisfy the proof of
progress requirements set forth in paragraph (d) or (e) of subsection 4 by the
respective deadlines specified in those paragraphs.

6. If the proof of progress required by
paragraph (d) or (e) of subsection 4 is received by the utility on or before the
respective deadlines specified in those paragraphs but is determined to be
incomplete or to require clarification, the utility shall request additional
information. If the applicant fails to submit the additional requested
information within 20 calendar days after receipt of the request, the
application must be cancelled. Once the applicant has sufficiently demonstrated
that the project is progressing, the utility shall issue a notice that the
reservation has been confirmed.

7. If the applicant provides documentation
to satisfy all the requirements described in subsections 2, 3 and 4 at the time
of the initial application, the utility shall, within 30 days after receipt of
the application:

(a) Review the application and determine whether it
is complete; and

(b) Either issue a notice that the project has a
confirmed reservation or request more information as described in subsection 4.

8. After the solar thermal system has been
purchased, installed and put into operation, the applicant must submit to the
utility a rebate claim package which includes a rebate claim form and all
supporting documentation required by the utility. The rebate claim form must be
signed by both the eligible contractor and the customer.

9. To receive the rebate, all requirements
of the Solar Thermal Program must be met and a complete rebate claim package
must be submitted to the utility before the expiration date specified in the
confirmed reservation notice.

10. If a rebate claim package is incomplete
or requires clarification, the utility shall request the required information
from the applicant. If the applicant fails to provide the required information
within 20 calendar days after receiving the request for information, the
utility may reject the rebate claim form. If a rebate claim package is not
received on or before the expiration date specified in the confirmed
reservation notice, or the information in the rebate claim package indicates
that the project is otherwise ineligible, the utility shall send a written
notice to the applicant stating the reasons why the project is rejected and not
eligible for a rebate. The applicant may resubmit a rebate claim package but
will be subject to the eligibility requirements, rebate levels and funding
available at the time of the resubmission.

(Added to NAC by Pub. Utilities Comm’n by R210-09, eff.
4-20-2010)

NAC 701B.270Eligibility of applicant who withdraws from Program or does not
complete installation of solar thermal system.
(NRS 701B.336, 701B.342, 703.025)An
applicant who withdraws from the Program or does not complete the installation
of a solar thermal system:

1. For private residential property or small
business property, within 12 months after the expiration date on the
confirmation notice; or

2. For school property or public and other
property, within 30 months after the expiration date on the confirmation
notice,

Ę must reapply
as a new applicant and satisfy all requirements of the Program in effect at the
time of reapplication to be eligible for a rebate.

(Added to NAC by Pub. Utilities Comm’n by R210-09, eff.
4-20-2010)

NAC 701B.275Notification of customer of record regarding correspondence
between utility and applicant. (NRS 701B.336, 701B.342, 703.025)If the
applicant is not the customer of record, the utility shall notify the customer
of record of all correspondence between the utility and the applicant
throughout the Program process.

1. Be located on property within the Nevada
service territory of a participating utility.

2. Be installed in a building which is connected
to an existing distribution system of a participating utility.

3. Consist of solar thermal system
components that are new and unused.

4. Have a manufacturer’s warranty of not
less than 10 years that covers the solar collectors of the solar thermal system
against defects and undue degradation.

5. Have a manufacturer’s warranty of not
less than 5 years that covers each new tank of the solar thermal system, if
any.

6. Have a workmanship warranty of not less
than 2 years that covers the installation of the solar thermal system,
including labor and materials.

7. Be installed in conformity with the
manufacturer’s specifications and all applicable codes and standards.

8. Be installed by an eligible contractor.

9. Have:

(a) An OG-300 certification which is issued by the
Solar Rating and Certification Corporation or any other performance
certification that is approved by the Commission; or

(b) An OG-100 certification which is issued by the
Solar Rating and Certification Corporation or any other performance
certification that is approved by the Commission, and which must include:

(1) Documentation that supports the sound
design and expected performance of the solar thermal system; and

(2) The stamp or seal of a professional
engineer, the signature of the engineer attesting to the sound design of the
solar thermal system and the estimated annual savings of therms per year, the
date of signing and the date of expiration of the license of the engineer.

(Added to NAC by Pub. Utilities Comm’n by R210-09, eff.
4-20-2010; A by R083-11, 5-30-2012)

(c) Satisfy any additional requirements to install
solar thermal systems for the customers of the utility set forth in the annual
plan of the utility filed pursuant to NAC 701B.235.

2. A utility shall maintain a list of all
contractors who are eligible to install solar thermal systems for customers of
the utility under the Solar Thermal Program.

3. In reviewing a contractor participation
application submitted pursuant to this section, a utility shall verify that the
contractor’s license issued by the State Contractors’ Board is currently valid
and active. If the utility determines that the contractor’s license was
suspended during the application process:

(a) The utility shall not confirm any incentive
reservation associated with the contractor;

(b) The utility shall suspend any application
associated with the contractor;

(c) The utility shall not make any incentive
payment for a solar thermal system associated with the contractor, unless the
solar thermal system was put into operation before the suspension of the
license;

(d) The utility shall notify each party identified
on the application of the suspension; and

(e) If the solar thermal system has not been
installed, the customer may hire a new contractor without losing the current
incentive reservation.

4. Upon a determination that a contractor’s
license has been reinstated by the State Contractors’ Board, the utility shall
reinstate any application suspended pursuant to subsection 3, may confirm any
incentive reservation associated with the contractor and may make any incentive
payment for a solar thermal system associated with the contractor.

5. The utility shall provide on its Internet
website, adjacent to its application forms, a best practices guide to selecting
a contractor and other consumer resources, including, without limitation, the
contact information of the State Contractors’ Board.

(Added to NAC by Pub. Utilities Comm’n by R210-09, eff.
4-20-2010; A by R083-11, 5-30-2012)

1. Except as otherwise provided in
subsection 2, shall use a two-tank system, where a new tank is dedicated to
storing water heated by solar panels and the customer’s existing tank is used
to heat water with natural gas.

2. In a retrofit application, may use just a
customer’s existing tank in combination with an external heat exchanger if:

(a) The existing tank is still under warranty or is
less than 3 years old;

(b) The application includes the stamp or seal of a
professional engineer, the signature of the engineer attesting to the expected
performance and sound design of the solar thermal system, the date of signing
and the date of expiration of the license of the engineer; and

(c) The customer is provided with a written
disclosure consisting of an estimate of the efficiency of a one-tank system
with an external heat exchanger compared to an estimate of the efficiency of a
two-tank system, all other variables being the same or reasonably similar.

NAC 701B.305“Generating capacity” defined. (NRS 701B.350, 703.025)“Generating
capacity” means the sum total of the nameplate capacities of the electrical
generating units and associated facilities of a particular renewable energy
system or combination of renewable energy systems.

NAC 701B.325“Renewable energy system generator” defined. (NRS 701B.350, 703.025)“Renewable
energy system generator” means an entity that may take advantage of any tax
benefits available for the installation and operation of a renewable energy
system or combination of renewable energy systems under the Renewable Energy
School Pilot Program. The term does not include a school district or utility.

1. A utility shall provide to each school
district within its service area a written description of the Renewable Energy
School Pilot Program on or before:

(a) May 1, 2008; and

(b) February 1 of each calendar year thereafter for
as long as the Program is in existence.

2. The written description of the Renewable
Energy School Pilot Program must include, without limitation, the following:

(a) A summary of any applicable Nevada laws and
regulations related to the Program;

(b) A copy of any applicable Nevada laws and
regulations related to the Program;

(c) A description of any incentives available for
participation in the Program; and

(d) The contact information for a person within the
utility who shall provide additional information and answer questions about the
Program.

(Added to NAC by Pub. Utilities Comm’n by R204-07, eff.
4-17-2008)

NAC 701B.350Application to participate in Program. (NRS 701B.350, 703.025)A school
district may apply to participate in the Renewable Energy School Pilot Program
by delivering to a person designated by the applicable utility a letter of
intent, which must include, without limitation, the following information:

1. The name and address of the school and
the school property at which the proposed renewable energy system or
combination of renewable energy systems will be located;

2. The name, address, telephone number and
electronic mail address of the person or persons charged with implementing and
managing the Program at the school district;

3. The size and type of the proposed
renewable energy system or combination of renewable energy systems;

4. A project timeline for the installation
of the proposed renewable energy system or combination of renewable energy
systems, including, without limitation, a list of project milestones for the
process of installation;

5. The name and contact information for any
renewable energy system generator involved in the implementation or management
of the Program; and

6. A summary of the material terms of any
proposed transaction or agreement involving a renewable energy system
generator.

(Added to NAC by Pub. Utilities Comm’n by R204-07, eff.
4-17-2008)

NAC 701B.355Location of renewable energy systems. (NRS 701B.350, 703.025)A
renewable energy system or combination of renewable energy systems used for the
Program must be located on the school property where the electricity generated
will be consumed.

1. Under the Renewable Energy School Pilot
Program, a school district shall not install a renewable energy system or
combination of renewable energy systems that has a generating capacity that
exceeds 150 percent of the peak demand of the school.

2. If a renewable energy system used in the
Program meets the requirements of NRS
704.766 to 704.775,
inclusive, the school district is entitled to participate in net metering
pursuant to the provisions of NRS
704.766 to 704.775,
inclusive.

1. The transactions allowed under the
Renewable Energy School Pilot Program are limited to:

(a) If the renewable energy system or combination
of renewable energy systems is owned by the school district, a transaction
between the school district and the utility in which the school district sells
to the utility the energy generated by the renewable energy system or
combination of renewable energy systems;

(b) If the renewable energy system or combination
of renewable energy systems is located on school property and is owned by a
renewable energy system generator, one or more transactions in which:

(1) The renewable energy system generator
sells to the utility the energy generated by the renewable energy system or
combination of renewable energy systems;

(2) The school district purchases the electricity
from the utility according to the appropriate tariff; and

(3) The rate for energy and capacity purchased
by the utility from the renewable energy system generator and resold to the
school district must be the same rate as that negotiated between the renewable
energy system generator and the school district; or

(c) Such other transactions as the Commission may
approve from time to time, including, without limitation, partnerships or joint
ventures with renewable energy system generators, based upon the submission of
the applicable tariffs for the proposed transactions.

2. A utility shall file for approval by the
Commission a tariff that sets forth further requirements for transactions under
the Program, as administered in the service area of the utility.

NAC 701B.423“Corporation for public benefit” defined. (NRS 701B.005, 701B.590, 703.025)“Corporation
for public benefit” means a corporation that is organized for a public or
charitable purpose and which upon dissolution must distribute its assets to the
United States, a state, or a person which is recognized as exempt pursuant to
26 U.S.C. § 501(c)(3).

(Added to NAC by Pub. Utilities Comm’n by R122-13, eff.
2-26-2014)

NAC 701B.425“Host customer” defined. (NRS 701B.590, 703.025)“Host
customer” means either the utility customer of record at the location where a
wind energy system will be located or a person who has been designated by the
utility customer of record in a letter to the utility explaining the
relationship between that person and the utility customer of record.

NAC 701B.455“System owner” defined. (NRS 701B.590, 703.025)“System
owner” means the owner of the generating equipment at the time an incentive is
paid. If a wind energy system is owned by a third party, the third party is the
system owner.

3. A report on the activity of the Program
during the immediately preceding calendar year and the current calendar year
which includes, without limitation, the most up-to-date versions of the
following information for each calendar year:

(a) The number of applications filed in each
program category;

(b) The number of participants enrolled in the
Program and the number who have dropped out of the Program;

(c) The annual budget and expenditures;

(d) Any remaining financial obligations at the end
of a calendar year;

(e) A list of completed installations;

(f) A summary of marketing efforts;

(g) A description of training and educational
activities; and

(h) The results of participant surveys.

4. A description of the application process,
including, without limitation:

(a) The procedures to be followed by the utility
and the applicant;

(b) The criteria for the selection of applicants
for the Program;

(c) Copies of proposed applications and forms; and

(d) The procedures for a participant to claim the
incentive at completion of the project and a copy of the required claim form,
which must include, at a minimum, the following data and attachments:

(1) The name and address of the participant;

(2) The address at which the wind energy
system is located;

(3) The technical description of the main
components of the wind energy system if different from the application;

(4) An assignment of the incentive payment, if
applicable;

(5) A building permit signed off by the
applicable governing jurisdiction to ensure that the wind energy system
complies with all local codes;

(6) A voltage verification form to ensure that
the meter socket is ready for meter set;

(7) An invoice for the wind energy system to
ensure that a properly licensed contractor performed the required work and that
the wind energy system equipment is new and has not been previously installed;
and

(8) A net metering agreement if not previously
provided.

5. The total of all incentives paid for the
immediately preceding calendar year.

6. The total of all incentives projected to
be paid for the calendar year, with subtotals for incentives paid for installed
capacity, incentives projected to be paid for active reservations and
incentives forecasted to be paid.

7. A detailed advertising plan.

8. An education and training plan.

9. Standards and requirements for applicants
to provide proof of wind speeds at tower sites for participating wind energy
systems.

10. Proposed wind turbine certification
lists for the next subsequent calendar year which outline the wind turbine
models eligible for participation in the Program. After notifying the
Commission, the utility may modify the wind turbine certification lists to
address changes in the certification programs or suspend turbines from
participation in the Program which have a demonstrated pattern of failure or
unreliability.

11. An inspection and verification plan for
wind energy systems which verifies that an applicant or participant meets all
applicable requirements.

12. The average installed cost in Nevada of
a wind energy system during the immediately preceding calendar year.

13. A graph and table showing the cumulative
committed capacity and incurred incentive liability, separated into installed
capacity and active reservations, at the end of each year since the inception
of the Program.

14. A table demonstrating the effects of the
Program on the rates paid by customers.

15. A survey for participants which
includes, without limitation, questions on:

(a) The
operational effectiveness of the participant’s wind energy system, including,
without limitation, the total kilowatt-hours of electricity generated per
calendar year;

(b) Environmental issues, including, without
limitation, the number of birds killed in relation to the wind energy system,
the noise produced by the system and any other aesthetic issues related to the
system; and

NAC 701B.485Annual plan of utility: Approval by Commission. (NRS 701B.590, 703.025)Not
later than 150 days after the annual plan is filed pursuant to NAC 701B.480, the Commission will issue an order approving
the annual plan with such modifications and upon such terms and conditions as
the Commission finds necessary or appropriate to facilitate the Program.

1. All reasonable and prudent costs
associated with carrying out and administering the Wind Demonstration Program
must be accounted for in the books and records of a utility separately from
amounts attributable to any other activity. The utility must account for the
costs and revenues in the following manner:

(a) Calculate, on a monthly basis, the costs
incurred and revenues received in the Wind Demonstration Program since the end
of the test period in its last proceeding to change the Wind Demonstration
Program rate;

(b) Record the cost of the Wind Demonstration
Program in a separate subaccount of FERC Account No. 182.3 and record an offset
in the appropriate subaccount of other FERC accounts;

1. A utility shall include with its annual
deferred energy accounting adjustment application filed pursuant to subsection
11 of NRS 704.110 a revised Wind
Demonstration Program rate. The rate must be calculated by adding the following
two components:

(a) A prospective rate determined by dividing not
more than the total costs in the Wind Demonstration Program annual plan by the
projected kilowatt-hours for the calendar year; and

(b) A clearing rate determined by dividing the
cumulative balance in the Wind Demonstration Program subaccount of FERC Account
No. 182.3 at the end of the deferred energy test period as defined in NAC 704.063 by the test period
kilowatt-hour sales.

2. The Commission will allow recovery of all
prudent Wind Demonstration Program costs included in the subaccount of FERC
Account No. 182.3 at the end of the test period as defined in NAC 704.063 and adjust the Wind Demonstration
Program rate accordingly.

NAC 701B.500Receipt of incentives established when application approved. (NRS 701B.005, 701B.590, 701B.615, 703.025)A
participant must receive the incentives established at the time that his or her
application was approved if:

1. The incentives for a participant change
between the time the application is approved and the time the wind energy
system is completed; and

2. The participant completes installation of
the wind energy system and submits a form to claim the incentive pursuant to
subsection 6 of NAC 701B.510 not later than the
expiration date listed on the notice issued pursuant to subsection 4 of NAC 701B.510.

1. The utility shall offer to a host
customer an incentive that is paid over a period of 5 years. The incentive must
be based upon the metered production of electricity by the wind energy system.
The total amount of the incentive paid to a host customer must not exceed 50
percent of the installed cost of the wind energy system of the host customer. A
host customer or, pursuant to subsection 1 of NAC 701B.535,
a system owner may apply for the incentive. The project site must be located in
the service territory of the utility.

2. A host customer must, based upon the
nature of the host customer, be designated as one of the following categories:

(a) Public entity;

(b) Low-income and nonprofit;

(c) Residential and small commercial; or

(d) Large commercial and industrial.

3. The rate of the incentive payment offered
pursuant to subsection 1 must be established by the Commission in the
proceeding to review the annual plan of a utility. The utility shall include in
its first annual plan filed after February 26, 2014, proposed incentive levels
for each category and a detailed procedure and schedule for the payment of
incentives. The Commission may approve the proposed incentive levels, in whole
or in part, or prescribe incentive levels other than those proposed by the
utility. The utility may, in a subsequent annual plan, propose to modify any
incentive level approved by the Commission pursuant to this subsection. The
Commission may approve the proposed modification, in whole or in part, or
prescribe an incentive level other than the incentive level proposed by the
utility. In approving any incentive level or modification pursuant to this
subsection, the Commission will ensure that the incentive level or modification
is consistent with paragraph (b) of subsection 1 of NRS 701B.590.

4. A contract to receive an incentive
payment offered pursuant to subsection 1 must not be executed on or after
January 1, 2021. The contract must not provide for the payment of the
incentive, or any portion thereof, after December 31, 2025. The incentive must
be paid on a quarterly basis and must be paid directly to the host customer or
third-party assignee of the host customer.

5. A wind energy system with a capacity of
more than 500 kilowatts is not eligible to receive an incentive.

6. The utility shall not issue a reservation
notice to a host customer if the incentive that would be paid under the notice
would cause the incentive expenditure cap established pursuant to paragraph (b)
of subsection 2 of NRS 701B.005
to be exceeded.

7. If a host customer installs a wind energy
system that has greater kilowatt capacity than the number of kilowatts in its
confirmed reservation, the host customer must receive the incentive level in
its confirmed reservation for only the kilowatt capacity described in the
confirmed reservation.

8. Portfolio energy credits generated by a
host customer participating in the Program must be assigned to the utility
pursuant to NRS 701B.640 and 704.775.

9. As used in this section:

(a) “Low-income and nonprofit” means a category of
host customer that is:

(1) An entity that owns publicly subsidized
housing;

(2) A nonprofit corporation or other
organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C.
§ 501(c)(3);

(4) A person whose income does not exceed 80
percent of the median family income for the county in which the person resides,
subject to an adjustment for any area with unusually high or low median incomes
or housing costs; or

(5) A Title I school.

(b) “Public entity” means a category of host
customer that is:

(1) A department or agency of a state or local
government;

(2) A public school district;

(3) An institute of higher education that is
part of the Nevada System of Higher Education;

(Added to NAC by Pub. Utilities Comm’n by R185-09, eff.
4-20-2010; A by R122-13, 2-26-2014)

NAC 701B.507Provision of application to Commission. (NRS 701B.005, 701B.590, 703.025)A
utility shall provide to the Commission each application, including related
materials, submitted by a host customer designated pursuant to NAC 701B.505 as a public entity, other than a
corporation for public benefit or an Indian tribe or tribal organization. The
application must be submitted to the Commission not later than 30 days after
the application is approved and the issuance of a reservation notice. Confidential
information, including, without limitation, personal identifying information,
must be provided to the Commission pursuant to NAC 703.527 to 703.5282, inclusive.

1. An application for the reservation of an
incentive must be made using a form approved by the Commission and must
include, without limitation:

(a) If the system owner is not the host customer, a
copy of the executed agreement between the host customer and the system owner;
and

(b) Any documentation required by the utility which
substantiates ownership of the equipment.

2. The utility shall provide on its Internet
website, adjacent to the application forms, a best practices guide to selecting
a contractor and other consumer resources, including, but not limited to, the
current contact information for the State Contractors’ Board.

3. If an application is found to be
incomplete or requires clarification, the utility shall request additional
information. If the applicant has not submitted the requested information
within 20 calendar days after receipt of the request, the application will be
cancelled and the applicant may resubmit an application to the utility. The
utility shall treat all resubmitted applications as new applications and
process them in sequence with other new applications. Money for an incentive is
not reserved until the utility receives all information and documentation
required for the application and the project is approved.

4. The utility shall, within 30 days after
receipt of an application, review the application for completeness and
determine eligibility. Once the utility approves the application, the utility
shall issue a notice confirming that a specific incentive amount is reserved
for the project. The wind energy system must be installed and capable of
producing electricity on or before the expiration date listed on the notice.
The notice must list:

(a) The maximum incentive amount that has been
reserved for the project;

(b) The approved kilowatt capacity of the project;
and

(c) An expiration date for the reservation, which
must be 12 months after the date of the issuance of the notice.

5. To receive the full incentive available
for the reservation, the applicant must complete the installation of the
participating wind energy system and submit the form to claim the incentive
required by subsection 6 not later than the expiration date listed on the notice
issued pursuant to subsection 4.

6. To claim the incentive, the applicant
must submit a form approved by the Commission to the utility after the wind
energy system is installed and capable of producing electricity. The form must
include, without limitation:

(a) Signatures of the applicant, the host customer
and the system owner, if different from the host customer;

(b) Any supporting documentation deemed necessary
by the Commission; and

(c) Any documentation substantiating ownership of
the equipment required by the utility.

7. To be eligible for an incentive, the
tower site of the wind energy system must have an average annual wind speed at
hub height of 10 miles per hour or greater.

NAC 701B.513Docket to include applications in public records of Commission. (NRS 701B.005, 701B.590, 703.025)The
Commission will, for each calendar year, open a docket in which to file
applications received by a utility under the Program for the purpose of
including such applications in the public records of the Commission.

1. Once a project is completed, the
applicant may request payment of the incentive amount listed on the confirmed
reservation. A project is considered completed when it is completely installed,
interconnected, permitted and capable of producing electricity in the manner
and in the amounts for which it was designed.

2. To receive the incentive:

(a) All requirements of the Program must be met;

(b) A complete claim form must be submitted by the
expiration date listed for the project on its confirmed reservation, including,
without limitation, final itemized invoices of the cost of tangible materials
and labor, and any documentation verifying the installed cost of the project pursuant
to subsection 5 of NRS 701B.615;

(c) The host customer must enter into a net
metering agreement with the utility; and

(d) If the host customer is designated pursuant to NAC 701B.505 as a public entity, other than a
corporation for public benefit or an Indian tribe or tribal organization, the
application for reservation of the incentive must include an attestation that
the host customer has complied with all applicable provisions of chapters 338 and 701B of NRS.

3. If a claim form is incomplete or is found
to require clarification, the utility shall request the information necessary
to process that application further. If the applicant has not submitted the
requested information within 20 calendar days after receipt of the request, the
request for payment may be denied. If a claim form is not received by the
expiration date for the project, or if the project is otherwise ineligible, the
utility shall send a written notice to the applicant stating the reasons why
the project is ineligible and that the project is rejected. If a project is
rejected, the applicant or host customer may reapply for the reservation of an
incentive but will be subject to the eligibility requirements, incentive levels
and funding available at the time of reapplication.

4. As used in this section, “cost of
tangible materials and labor” means the cost of materials and labor for
permitting, generators, towers, inverters, the balance of system components and
any other costs that are directly related to and required for the operation of
a wind energy system. The term does not include such costs for improvements to
a building or site which are necessary to accommodate a wind energy system.

(Added to NAC by Pub. Utilities Comm’n by R185-09, eff.
4-20-2010; A by R122-13, 2-26-2014)

NAC 701B.525Withdrawal of host customer or system owner. (NRS 701B.005, 701B.590, 703.025)The host
customer or system owner may withdraw from the Program for any reason by
providing written notice of withdrawal to the utility.

(Added to NAC by Pub. Utilities Comm’n by R185-09, eff.
4-20-2010; A by R122-13, 2-26-2014)

NAC 701B.530Eligibility of participant who withdraws or forfeits incentive
for wind energy system. (NRS 701B.590, 701B.615, 703.025)A
participant who withdraws or forfeits an incentive must reapply as a new
applicant to be eligible for an incentive. The applicant must meet all requirements
of the Program that are in effect at the time of reapplication.

(Added to NAC by Pub. Utilities Comm’n by R185-09, eff.
4-20-2010; A by R025-12, 9-14-2012)

1. The host customer may act as the
applicant or system owner, may designate the applicant or system owner to act
on his or her behalf and may change these designations at any time with prior
written notice to the utility.

2. The host customer is the holder of the
reservation of an incentive, must be a party to any agreement or contract with
the utility and retains sole rights to the reservation.

3. If the host customer is not the system
owner, the system owner must be a party to any agreement or contract with the
utility.

(Added to NAC by Pub. Utilities Comm’n by R185-09, eff.
4-20-2010; A by R122-13, 2-26-2014)

1. A wind energy system must be located on
property within the Nevada service territory of a participating utility; and

2. An applicant must prove that his or her
wind energy system has never been previously installed at another location.

(Added to NAC by Pub. Utilities Comm’n by R174-07, eff.
4-17-2008; A by R185-09, 4-20-2010)

NAC 701B.545Verification of licensing of contractors involved in installation
of wind energy system; suspension of contractor’s license during application
process. (NRS
701B.005, 701B.590, 703.025)In
reviewing an application, a utility shall verify that any contractor involved
in the installation of a wind energy system has an active license with the
State Contractors’ Board. If the utility determines that a contractor’s license
was suspended during the application process:

1. Reservations associated with the
contractor will not be confirmed;

2. Applications associated with the
contractor will be suspended;

3. No incentive payments will be made for
wind energy systems associated with the contractor, except for wind energy
systems which were interconnected before the suspension of the contractor’s
license or unless the suspension is lifted not later than 30 days after the
suspension;

4. The utility shall notify each party
identified on the application of the suspension; and

5. If the wind energy system has not been
installed, the host customer may hire a new contractor without losing the
current reservation of an incentive.

(Added to NAC by Pub. Utilities Comm’n by R185-09, eff.
4-20-2010; A by R122-13, 2-26-2014)

NAC 701B.613“Corporation for public benefit” defined. (NRS 701B.005, 701B.840, 703.025)“Corporation
for public benefit” means a corporation that is organized for a public or
charitable purpose and which upon dissolution must distribute its assets to the
United States, a state, or a person which is recognized as exempt pursuant to
26 U.S.C. § 501(c)(3).

(Added to NAC by Pub. Utilities Comm’n by R122-13, eff.
2-26-2014)

NAC 701B.615“Host customer” defined. (NRS 701B.840, 703.025)“Host
customer” means either the utility customer of record at the location where a
waterpower energy system will be located or a person who has been designated by
the utility customer of record in a letter to the utility explaining the
relationship between that person and the utility customer of record.

(Added to NAC by Pub. Utilities Comm’n by R173-07, eff.
4-17-2008; A by R083-11, 5-30-2012)

NAC 701B.630“System owner” defined. (NRS 701B.840, 703.025)“System
owner” means the owner of the generating equipment at the time an incentive is
paid. If a waterpower energy system is owned by a third party, the third party
is the system owner.

3. A report on the activity of the Program
during the immediately preceding calendar year and the current calendar year
which includes, without limitation, the most up-to-date versions of the
following information for each calendar year:

(a) The number of applications filed;

(b) The number of participants enrolled in the
Waterpower Demonstration Program and the number who have dropped out of the
Waterpower Demonstration Program;

(c) The annual budget and expenditures;

(d) Any remaining financial obligations at the end
of a calendar year;

(e) A list of completed installations;

(f) A summary of marketing efforts;

(g) A description of training and educational
activities; and

(h) The results of participant surveys;

4. A description of the application process,
including, without limitation:

(a) The procedures to be followed by the utility
and the applicant;

(b) The criteria for selection of applicants for
the Waterpower Demonstration Program;

(c) Copies of proposed applications and forms; and

(d) The procedures for a participant to claim the
incentive at completion of the project and a copy of the required claim form,
which must include, at a minimum, the following data and attachments:

(1) The name and address of the participant;

(2) The address at which the waterpower energy
system is located;

(3) The technical description of the main
components of the waterpower energy system, if different from the application;

(4) An assignment of the incentive payment, if
applicable;

(5) A building permit approved and signed by
the applicable governing jurisdiction to ensure that the waterpower energy
system complies with all local codes;

(6) A voltage verification form to ensure that
the meter socket is ready for meter set; and

(7) An invoice for the waterpower energy
system to ensure that a properly licensed contractor performed the required
work and that the waterpower energy system equipment is new and has not been
previously installed;

5. The total of all incentives paid for the
immediately preceding calendar year;

6. The total of all incentives projected to
be paid for the calendar year, with subtotals for incentives paid for installed
capacity, incentives projected to be paid for active reservations and
incentives forecasted to be paid;

7. A detailed advertising plan;

8. An education and training plan;

9. An inspection and verification plan for
waterpower energy systems which verifies that an applicant or participant meets
all applicable requirements;

10. The average installed cost in Nevada of
a waterpower energy system during the immediately preceding calendar year;

11. A graph and table showing the cumulative
committed capacity and incurred incentive liability, separated into installed
capacity and active reservations, at the end of each calendar year since the
commencement of the Program;

12. A table demonstrating the effects of the
Program on the rates paid by customers; and

13. A survey for participants which
includes, without limitation, questions on:

(a) The operational effectiveness of the
participant’s waterpower energy system, including, without limitation, the
total kilowatt-hours of electricity generated per calendar year; and

(b) Any other information regarding the
effectiveness of the Waterpower Demonstration Program.

NAC 701B.665Annual plan of utility: Approval by Commission. (NRS 701B.840, 701B.850, 703.025)Not
later than 150 days after the annual plan is filed pursuant to NAC 701B.660, the Commission will issue an order
approving the annual plan with such modifications and upon such terms and
conditions as the Commission finds necessary or appropriate to facilitate the
Program.

1. All reasonable and prudent costs associated
with carrying out and administering the Waterpower Demonstration Program must
be accounted for in the books and records of a utility separately from amounts
attributable to any other activity. The utility must account for the costs and
revenues in the following manner:

(a) Calculate, on a monthly basis, the costs
incurred and revenues received in the Waterpower Demonstration Program since
the end of the test period in its last proceeding to change the Waterpower
Demonstration Program rate;

(b) Record the cost of the Waterpower Demonstration
Program in a separate subaccount of FERC Account No. 182.3 and record an offset
in the appropriate subaccount of other FERC accounts;

1. A utility shall include with its annual
deferred energy accounting adjustment application filed pursuant to subsection
11 of NRS 704.110 a revised
Waterpower Demonstration Program rate. The rate must be calculated by adding
the following two components:

(a) A prospective rate determined by dividing not
more than the total costs in the Waterpower Demonstration Program annual plan
by the projected kilowatt-hours for the calendar year; and

(b) A clearing rate determined by dividing the
cumulative balance in the Waterpower Demonstration Program subaccount of FERC
Account No. 182.3 at the end of the deferred energy test period as defined in NAC 704.063 by the test period
kilowatt-hour sales.

2. The Commission will allow recovery of all
prudent Waterpower Demonstration Program costs included in the subaccount of
FERC Account No. 182.3 at the end of the test period as defined in NAC 704.063 and adjust the Waterpower
Demonstration Program rate accordingly.

NAC 701B.680Receipt of incentives established when application approved. (NRS 701B.005, 701B.840, 703.025)If the
incentives for a participant’s first calendar year change between the time his
or her application is approved and the time the waterpower energy system is
completed, the participant must receive for that calendar year the incentives
established at the time that the application was approved.

1. The utility shall offer to a host
customer an incentive that is paid over a period of 5 years. The incentive must
be based upon the metered production of electricity by the waterpower energy
system. The total amount of the incentive paid to a host customer must not
exceed 50 percent of the installed cost of the waterpower energy system of the
host customer. Any customer of a utility that receives retail electric service
from the utility may apply for an incentive. A host customer may apply for the
incentive or a system owner may apply for the incentive. The project site must
be located in the service territory of the utility.

2. A host customer must, based upon the
nature of the host customer, be designated as one of the following categories:

(a) Public entity;

(b) Low-income and nonprofit;

(c) Residential and small commercial; or

(d) Large commercial and industrial.

3. The rate of the incentive payment offered
pursuant to subsection 1 must be established by the Commission in the
proceeding to review the annual plan of a utility. The utility shall include in
its first annual plan filed after February 26, 2014, proposed incentive levels
for each category and a detailed procedure and schedule for the payment of
incentives. The Commission may approve the proposed incentive levels, in whole
or in part, or prescribe incentive levels other than those proposed by the utility.
The utility may, in a subsequent annual plan, propose to modify any incentive
level approved by the Commission pursuant to this subsection. The Commission
may approve the proposed modification, in whole or in part, or prescribe an
incentive level other than the incentive level proposed by the utility.

4. A contract to receive an incentive paid
over a period of 5 years executed pursuant to this section must not be executed
on or after January 1, 2021. The contract must not provide for the payment of
the incentive, or any portion thereof, after December 31, 2025. The incentive
must be paid on a quarterly basis and must be paid directly to the host
customer or third-party assignee of the host customer.

5. The utility shall not issue a reservation
notice to a host customer if the incentive that would be paid under the notice
would cause the incentive expenditure cap established pursuant to paragraph (b)
of subsection 2 of NRS 701B.005
to be exceeded.

6. A waterpower energy system with a
capacity of more than 500 kilowatts is not eligible to receive an incentive.

7. If a host customer installs a waterpower
energy system that has greater kilowatt capacity than the amount of kilowatts
in its confirmed reservation, the host customer must receive the incentive
level in its confirmed reservation for only the kilowatt capacity described in
the confirmed reservation.

8. Portfolio energy credits generated by a
host customer participating in the Program must be assigned to the utility
pursuant to NRS 701B.870 and 704.775.

9. As used in this section:

(a) “Low-income and nonprofit” means a category of
host customer that is:

(1) An entity that owns publicly subsidized
housing;

(2) A nonprofit corporation or other
organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C.
§ 501(c)(3);

(4) A person whose income does not exceed 80
percent of the median family income for the county in which the person resides,
subject to an adjustment for any area with unusually high or low median incomes
or housing costs; or

(5) A Title I school.

(b) “Public entity” means a category of host
customer that is:

(1) A department or agency of a state or local
government;

(2) A public school district;

(3) An institute of higher education that is
part of the Nevada System of Higher Education;

(Added to NAC by Pub. Utilities Comm’n by R186-09, eff.
4-20-2010; A by R122-13, 2-26-2014)

NAC 701B.687Provision of application to Commission. (NRS 701B.005, 701B.840, 703.025)A
utility shall provide to the Commission each application, including related
materials, submitted by a host customer designated pursuant to NAC 701B.685 as a public entity, other than a
corporation for public benefit or an Indian tribe or tribal organization. The
application must be submitted to the Commission not later than 30 days after
the application is approved and the issuance of a reservation notice.
Confidential information, including, without limitation, personal identifying
information, must be provided to the Commission pursuant to NAC 703.527 to 703.5282, inclusive.

(Added to NAC by Pub. Utilities Comm’n by R122-13, eff.
2-26-2014)

NAC 701B.690Participation in Program: Application for reservation of
incentive; cancellation and resubmission of application; duties of utility and
applicant; claim for incentive. (NRS 701B.005, 701B.820, 701B.840, 703.025)For all
categories:

1. An application for the reservation of an
incentive must be made using a form approved by the Commission and must
include, without limitation:

(a) If the system owner is not the host customer, a
copy of the executed agreement between the host customer and the system owner;

(b) A computation stamped by a professional
engineer licensed in this State that provides the estimated hours of operation
of the waterpower energy system and the estimated annual kilowatt-hour output
of the proposed waterpower energy system; and

(c) Any documentation required by the utility which
substantiates ownership of the equipment.

2. The utility shall provide on its Internet
website, adjacent to the application forms, a best practices guide to selecting
a contractor and other consumer resources, including, but not limited to, the
current contact information for the State Contractors’ Board.

3. If an application is found to be
incomplete or requires clarification, the utility shall request additional
information. If the applicant has not submitted the requested information
within 20 calendar days after receipt of the request, the application will be
cancelled, and the applicant may resubmit an application to the utility. The
utility shall treat all resubmitted applications as new applications and
process them in sequence with other new applications. Money for an incentive is
not reserved until the utility receives all information and documentation
required for the application and the project is approved.

4. The utility shall, within 30 days after
receipt of an application, review the application for completeness and
determine eligibility. Once the utility approves the application, the utility
shall issue a notice confirming that a maximum incentive amount is reserved for
the project. The waterpower energy system must be installed and capable of
producing electricity on or before the expiration date listed on the notice.
The notice must list:

(a) The incentive amount that has been reserved for
the project;

(b) The approved kilowatt capacity of the project;
and

(c) An expiration date for the reservation, which
must be 12 months after the date of the issuance of the notice.

5. The applicant must complete the
installation of a waterpower energy system not later than the expiration date
listed on the notice issued pursuant to subsection 4.

6. To claim the incentive, the applicant
must submit a form approved by the Commission to the utility after the
waterpower energy system is installed and capable of producing electricity. The
form must include, without limitation:

(a) Signatures of the applicant, the host customer
and the system owner, if different from the host customer;

(b) Any supporting documentation deemed necessary
by the Commission;

(c) Any documentation substantiating ownership of
the equipment required by the utility; and

(d) Any documentation substantiating that the host
customer has entered into a net metering agreement with the utility.

(Added to NAC by Pub. Utilities Comm’n by R186-09, eff.
4-20-2010; A by R122-13, 2-26-2014)

NAC 701B.693Docket to include applications in public records of Commission. (NRS 701B.005, 701B.840, 703.025)The
Commission will, for each calendar year, open a docket in which to file
applications received by a utility under the Program for the purpose of
including such applications in the public records of the Commission.

1. Once a project is completed, the
applicant may request payment of the incentive listed on the confirmed
reservation. A project is considered completed when it is completely installed,
interconnected, permitted and capable of producing electricity in the manner
and in the amounts for which it was designed.

2. To receive the incentive:

(a) All requirements of the Program must be met;

(b) A complete claim form must be submitted before
the expiration date listed for the project on its confirmed reservation,
including, without limitation, final itemized invoices of the cost of tangible
materials and labor, and any documentation verifying the installed cost of the
project pursuant to subsection 5 of NRS
701B.615;

(c) The host customer must enter into a net
metering agreement with the utility; and

(d) If the host customer is designated pursuant to NAC 701B.685 as a public entity, other than a
corporation for public benefit or an Indian tribe or tribal organization, the
application for reservation of the incentive must include an attestation that
the host customer has complied with all applicable provisions of chapters 338 and 701B of NRS.

3. If a claim form is incomplete or is found
to require clarification, the utility shall request the information necessary
to process that application further. If the applicant has not submitted the
requested information within 20 calendar days after receipt of the request, the
request for payment may be denied. If a claim form is not received by the
expiration date for the project, or if the project is otherwise ineligible, the
utility shall send a written notice to the applicant stating the reasons why
the project is ineligible and that the project is rejected. If a project is
rejected, the applicant or host customer may reapply for the reservation of an
incentive but will be subject to the eligibility requirements, incentive levels
and funding available at the time of reapplication.

4. As used in this section, “cost of
tangible materials and labor” means the cost of materials and labor for
permitting, generators, towers, inverters, the balance of system components and
any other costs that are directly related to and required for the operation of
a waterpower energy system. The term does not include such costs for
improvements to a building or site which are necessary to accommodate a
waterpower energy system.

(Added to NAC by Pub. Utilities Comm’n by R186-09, eff.
4-20-2010; A by R122-13, 2-26-2014)

NAC 701B.700Withdrawal of host customer or system owner; preservation of reservation
after withdrawal; application for new reservation. (NRS 701B.840, 703.025)

1. The host customer or system owner may
withdraw from the Program for any reason by providing written notice of
withdrawal to the utility.

2. The host customer retains sole rights to
the reservation for 30 days after submitting notice of withdrawal and may
preserve the reservation beyond 30 days by submitting a revised application for
a reservation to the utility before the expiration of the 30 days. The host
customer may not increase the incentive amount in the original reservation.

3. If the host customer does not resubmit an
application for a reservation within 30 days after withdrawal from the Program,
the original application will be terminated in its entirety and any previously
reserved incentive money will be released. The host customer may apply for a
new reservation of an incentive if the host customer still wishes to
participate in the Program.

(Added to NAC by Pub. Utilities Comm’n by R186-09, eff.
4-20-2010)

NAC 701B.705Eligibility of participant who withdraws or does not complete
installation of waterpower energy system. (NRS 701B.840, 703.025)A
participant who withdraws or who does not complete the installation of his or
her waterpower energy system within 12 months after the date on which the
applicant is selected to participate in the Program must reapply as a new
applicant to be eligible for an incentive. The applicant must meet all
requirements of the Program that are in effect at the time of reapplication.

(Added to NAC by Pub. Utilities Comm’n by R186-09, eff.
4-20-2010)

NAC 701B.710Rights of host customer; required party to agreement or contract
with utility. (NRS
701B.840, 703.025)

1. The host customer may act as the
applicant or system owner, may designate the applicant or system owner to act
on his or her behalf and may change these designations at any time with prior
written notice to the utility.

2. The host customer is the holder of the
reservation of an incentive, must be a party to any agreement or contract with
the utility and retains sole rights to the reservation except as otherwise provided
in subsections 2 and 3 of NAC 701B.700.

3. If the host customer is not the system
owner, the system owner must be a party to any agreement or contract with the
utility.

1. A waterpower energy system must be
located on property within the Nevada service territory of a participating
utility.

2. An applicant must prove that his or her
waterpower energy system has never been previously installed at another
location.

(Added to NAC by Pub. Utilities Comm’n by R173-07, eff.
4-17-2008; A by R186-09, 4-20-2010)

NAC 701B.720Verification of licensing of contractors involved in installation
of waterpower energy system; suspension of contractor’s license during
application process. (NRS 701B.005, 701B.840, 703.025)In
reviewing an application, a utility shall verify that any contractor involved
in the installation of a waterpower energy system has an active license with
the State Contractors’ Board. If the utility determines that a contractor’s
license was suspended during the application process:

1. Reservations associated with the
contractor will not be confirmed;

2. Applications associated with the
contractor will be suspended;

3. No incentive payments will be made for
waterpower energy systems associated with the contractor, except for waterpower
energy systems which were interconnected before the suspension of the
contractor’s license or unless the suspension is lifted not later than 30 days
after the suspension;

4. The utility shall notify each party identified
on the application of the suspension; and

5. If the waterpower energy system has not
been installed, the host customer may hire a new contractor without losing the
current reservation of an incentive.

(Added to NAC by Pub. Utilities Comm’n by R186-09, eff.
4-20-2010; A by R122-13, 2-26-2014)